Regal Petroleum PLC
26 September 2005
Immediate Release 26 September 2005
('Regal' or 'the Company')
Ukranian Update
Responding to the volatility in Regal's share price over the last few trading
days, the Board of Regal ('the Board') would like to inform shareholders of the
following with regards to its Ukrainian assets:
• The Company does not and never has regarded a complete 'sell out' of its
100% assets in the Ukraine to be the right course for the Company. The Board
remains keen to pursue its original and preferred course of carrying out the
full field development and production of its Ukraine assets for the benefit
of the shareholders, the Government and the people of Ukraine.
• Although channels of communication with Peak Resources Ltd of Hong Kong
could still be described as 'open', the Board believes these negotiations,
which were foisted upon the Company after the discovery of an unknown
apparent 'option', would not be in the best interests of shareholders.
• Whilst it is public knowledge that there is an on-going appeal process in
Ukraine the Board would like to clarify that this legal process is not
connected in any way to the Company's licence rights in Ukraine, which are
not in question.
• The original case was initiated by the Company surrounding the
distribution of the rights to property (wells, pipeline and pilot production
plant) which were developed in the Joint Venture (JV) between the Company
and Chernihivnaftogasgeology (CNGG) up to the date when that JV was
dissolved in June 2004.
• At the Company's request, a value to be associated with those property
rights was determined by the Court and its appointed auditor. The Company
paid the appropriate sum into Court in August 2005. CNGG is currently
appealing that valuation.
• Prior to the dissolution of the JV, the JV operated an 'Exploration &
Pilot Production Licence' from the Government. That licence was subsequently
replaced by the current 'Development & Production Licence', which was
awarded 100% to Regal.
Commenting on the Company's commitment to its Ukrainian business, Dr Rex
Gaisford, Chief Executive of Regal, stated:
'Ukraine remains an exciting country in which Regal intends to develop a long
term presence. As the new political landscape becomes established, the Company
will seek to build a strong relationship with the Ukraine Government based on
mutual trust and transparency. The Company's present established position gives
it a great opportunity to seek additional licences and joint ventures in Ukraine
and if this endeavour is successful, it will reinforce the Company's intention
to have a growing long-term presence there. On conclusion of the Court appeal
the Board will make a further announcement.'
For further information please contact:
Dr. Rex Gaisford
Regal Tel: 020 7408 9500
Bobby Morse/Ben Willey Tel: 020 7466 5000
Buchanan Communications
This information is provided by RNS
The company news service from the London Stock Exchange
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